Like most local governments, Takoma Park is funded through taxes on the value of private property in the City. The value of a property is assessed by the State of Maryland every 3 years. When a property is reassessed, any new construction would be included in the increased assessment of a property.

• For example, if a property owner built a new apartment building that cost $1,000,000 to build, the new assessed value would increase by close to that amount (with some adjustments based on the price similar buildings in the area have sold for recently).
• The incremental assessment would be the difference between the previous assessment and the new assessment.

A tax credit is a reduction in the tax bill. Other names include a tax abatement, PILOT, or tax rebate. The credit is added to the annual property tax bill and reduces the amount the property owner owes the City. The City is proposing 2 tax credits which would forgo the increased tax revenue (the incremental assessment discussed above) created by a property owner’s investment in their property as part of the City’s Proposed Housing Tax Credits.

The City has focused on tax credits for several reasons:

1. Tax Credits are specifically mentioned in the Housing & Economic Development Strategic Plan as a policy recommendation.
   • Housing and Community Development agrees with this recommendation because, with limited annual revenues but high per property assessments, tax credits represent the best avenue for the City to realize more immediate gains in housing priorities with lower up-front cost.
2. Furthermore, the proposed credits provide predictable financial support that can be used in obtaining financing from lenders.
3. Additionally, the value of the credit is based on the value of the investment in the City, which means that higher quality housing will be rewarded with a higher credit.

In other municipalities, incentives such as increasing the speed of review, reducing parking or other requirements, and allowing more units have been implemented as incentives to encourage housing production. The City is in a unique position because we do not have the ability to change these policies since they are controlled by the County. Furthermore, the City has a significant amount of affordable housing (roughly 40% of the City’s rental homes are deed-restricted Affordable Housing). This necessitates different tools than other jurisdictions.

Helpful links:

• New Tax Credits for Housing Development Webpage
• Housing and Economic Development Strategic Plan Webpage
• Housing and Economic Development Strategic Plan (PDF) 

Multifamily development is a costly and complex endeavor. Developers must demonstrate that their project can be financially self-sustaining while offering a return on investment to both equity investors (individuals or entities providing upfront capital for ownership stakes) and lenders (banks or financial institutions providing loans with a set annual return). These projects often compete for funding against other housing developments and various investment opportunities.

The Terner Center of UC Berkeley provides a helpful policy memo and interactive guide on how developers look at potential projects. As the report notes:

• “Return requirements have increased and financial underwriting has tightened.”  Since all developers must get loans and investments, rising interest rates and demands for higher returns from potential lenders make it more difficult to get a project built.
• A typical development project can cost anywhere between $450,000 – $600,000 per unit for an apartment. This would mean a new 100-home housing project could cost between $45 million and $65 million if there were no complications.

Redevelopment of Existing Housing

In addition to these challenges, demolishing a building to build new housing would face several hurdles.

1. Lenders would look at the potential return against the cost of simply keeping the building in operation and implementing repairs.
   • The cost of demolition will add to the cost of development as the builder will have to safely take down the older building, remove the materials, and prepare the site for the new building.
   • Some nationwide estimates have the cost of a 100-unit building being torn down at roughly $2.25 million.
   • This cost can be significantly higher if the building has toxic materials (such as asbestos) or the site is close to environmental resources like waterways.
     
     
2. There are local barriers to tearing down a building:
   •  Several renter protection policies provide renters with rights and the ability to get payouts if they are displaced by construction, raising the cost of any redevelopment.
     • These include the City’s Tenant Opportunity to Purchase Law (TOPL), as well as the County’s Tenant Displacement Law
   • Many multifamily properties in the City also have deed restrictions which limit their use to affordable housing and are owned by non-profit housing providers .
     • These policies and costs do not preclude a building from being torn down, but create strong incentives to instead choose to rehabilitate a building rather than tear it down.

The Development Process

Any housing project would have to get permitted and approved through the appropriate County permitting process. A helpful guide on the process can be found on the City of Takoma Park Website.

New construction and substantial renovation typically require the development to provide:

• a payment of impact fees for roads and schools and
•  the provision of public benefits

Large housing projects (Typically 10,000 square feet of building or more) would have to go through a public benefits process known as option method development.

• You can read more about this from the Montgomery County Planning Board.
• Public benefits vary based on the project but include the requirement to build/upgrade sidewalks, provide open space, public art, or other benefits based on the area plan.
• New development also must be built to the current building code standards, which include more stringent requirements for stormwater management and energy efficiency.

Helpful Links

• New Tax Credits for Housing Development Webpage
• Housing and Economic Development Strategic Plan Webpage
• Housing and Economic Development Strategic Plan (PDF) 

From Crossroads Community Food Network 

Crossroads Farmers Market is thrilled to announce a monumental milestone: $1 MILLION in SNAP-matching Fresh Checks incentives distributed to over 26,000 families in the Takoma/Langley Crossroads since 2007! That’s $2 MILLION invested in our community and local farmers.

State and county elected officials, USDA representatives, and community members will help mark this extraordinary accomplishment on Wednesday, September 25, at 12:00 pm. The market is located at Anne St. and University Blvd. in Takoma Park, and the event will feature live music, children’s activities, and a raffle. Attendees will also have the opportunity to learn more
about Crossroads’ commitment to making fresh, healthy food accessible to everyone in the community.

Crossroads’ innovative Fresh Checks program is rooted in a simple truth: affordable fresh food makes a difference. Crossroads was the first Maryland market to accept SNAP, WIC and other federal nutrition benefits, and the first nationwide to launch a “double dollar” program that matches the value of those benefits spent at the market.

“This isn’t just about numbers; it’s about advancing food equity,” said Lauren Goldberg, Executive Director of Crossroads Community Food Network. “One million dollars in Fresh Checks matching dollars means countless stories of families accessing fresh, nutritious food.”

Learn more about the Crossroads’ Fresh Checks program on the Crossroads Community Food Network webpage.

Washington Area Bicyclist Association (WABA)  and the City of Takoma Park will host three Learn to Ride: Bicycle Classes for children aged 6-11 who have never ridden a bike before or have tried to learn and have not been successful at the Takoma Park Recreation Center, 7315 New Hampshire Avenue:

• Saturday, September 14, 2024, from 9am-11am: For ages of at least 6 yrs but less than 9 yrs
• Saturday, September 21, 2024, from 9am-11am: Age at least 8 yrs but less than 11 yrs
• Saturday, September 28, 2024, from 9am-11am: Age at least 6 yrs but less than 9 yrs

About the Class

The League Cycling Instructors (LCIs) take students through a progressive curriculum, with the goal of riding with two pedals by the end of the session. WABA’s Youth Learn to Ride class breaks learning how to ride a bike down into 3 steps:

1. 1. Gliding
   2. Pedaling
   3. Riding

This class is right for your child if your child has never tried to learn how to ride a bike or if they have tried to learn and have not been successful.

1. 1. • To register for a class please visit the Takoma Park Recreation Activenet Site: https://bit.ly/TPRDBikeClass
      • Learn more about the program on the WABA Learn to Ride webpage: https://waba.org/learntoride/
      • Scholarship opportunities are available to families who reside within Takoma Park City limits who are in need. Visit the Recreation Department’s Scholarship Page for more details and to apply: https://takomaparkmd.gov/government/recreation/recreation-scholarships/

Please bring water, closed-toed shoes, athletic clothing, appropriate outerwear, snacks, and sunscreen!

The guiding document for Housing Policy in the City of Takoma Park is the City’s Housing and Economic Strategic Plan, adopted in October 2019. The Strategic Plan is designed to cover the period from 2019 through 2030 and help guide the City Council when setting policies and adopting budgets. It also assists City staff in developing annual implementation plans.

The plan underwent a multi-year development process. This included hiring an outside firm to evaluate the existing conditions, conduct a SWOT analysis, and develop the strategic plan alongside City Staff.

The Plan sets 3 goals:

• Preserve existing affordable housing and  businesses  in Takoma Park, including in revitalizing areas;
• Produce more housing and opportunities for businesses to start and grow across the income spectrum and in neighborhoods across the City to meet the diverse housing and economic needs; and,
• Protect renters, homeowners, and local businesses from discrimination and displacement, and protect our environment from destruction.

As part of the development of the plan, community members were invited to provide input on the draft Strategic Plan.

Extensive community outreach included:

• An online survey was conducted, and stakeholder interviews were conducted.
• A Listening Session was held on June 28, 2017, to provide residents with an additional opportunity to weigh in on local housing and economic development conditions.
• Two open houses were held in early November 2017.
• An online comment form was developed.
• In February 2018, community members were invited to attend a presentation by representatives from Mullin & Lonergan Associates and provide comments on the housing recommendations included in the draft.
• The City Council held 7 public hearings on the Plan between October 2018 and October 2019 as part of its adoption.
• For City Council Meetings, Agendas, and presentations, as well as other outreach materials, visit the Hosuing and Economic Development Strategic Plan webpage.

These goals have 48 objectives, of which 34 relate to Housing. You can learn more about the plan and find materials below:

City’s Housing and Economic Strategic Plan

On December 12, 1983, the City of Takoma Park City Council voted unanimously to adopt an ordinance establishing our city as a Nuclear-Free Zone. In doing so, Takoma Park became one of the first municipalities in the country to prohibit municipal investments in industries and institutions that are knowingly and intentionally engaged in the production of nuclear weapons. Over 40 years later, Takoma Park is still Nuclear-Free and calling for a global effort to prevent nuclear war.

On July 31, 2024, City Council adopted Resolution 2024-32, calling on the United States to lead a global effort to prevent nuclear war by: 

• actively pursuing a verifiable agreement among nuclear-armed states to eliminate their nuclear arsenals;
• renouncing the option of using nuclear weapons first;
• ending the sole, unchecked authority of any president to launch a nuclear attack;
• taking U.S. nuclear weapons off hair-trigger alert; and
• canceling the plan to replace its entire arsenal with enhanced weapons.

Learn more about the City of Takoma Park’s commitment to maintaining a Nuclear-Free City with some of the following resources:

• Resolution 2024-32 Calling for a Global Effort to Prevent Nuclear War.
• Takoma Park Nuclear-Free Zone Act
• Mayoral Proclamation Honoring the Forty Year Anniversary of Takoma Park’s Nuclear-Free Zone

The City of Takoma Park has been awarded a $92,000 Community Health and Safety Works grant from the Maryland Department of Housing and Community Development (DHCD)!

Grant Details

This grant funds a project on the 6500 block of Sligo Mill Road, a recurrent illegal dumping site, that addresses several health and environmental issues. The project will include:

• Reclaiming excess roadway as an extension of the woodland area, with a focus on bioretention to naturally treat contaminants in stormwater runoff approaching the stream, as well as erosion mitigation;
• Installing a camera to monitor traffic on the block;
• Narrowing the road and changing it to a one-way exit to preserve the commercial uses of the road and eliminate the opportunity for illegal dumping.
• When complete, the area will be publicly available greenspace, including interpretive signage explaining the bioretention and erosion strategies in place.

In their support of the City’s proposal, local residents Emily England and Alexander Morales said “The proposed structural changes will significantly reduce illegal dumping and improve community health and safety. The project will improve the health of our urban forest while improving community pride and our sense of ownership of public space.”

DHCD administers Community Health and Safety Works grant opportunities to improve the livability and economic potential of Maryland communities through targeted investments in the physical environment that impact health and safety.  Learn more about the Community Health and Safety Works grant award at the official DHCD Press Release.

The New Hampshire Gardens Community Association in Ward 6 has experienced heavy traffic, with pressure from drivers trying to avoid the Purple Line construction on University Boulevard and New Hampshire Avenue. City staff have been working with State Highway Administration (SHA) staff to understand and address some of the dangerous conditions.

• SHA, in cooperation with the City, has been examining the data and developing options for quick responses intended to reduce the number of cars going through the neighborhood. The City continues to meet quarterly with the SHA staff to track projects and concerns.
• The City is hiring a new Transit Planner, which will bring some of the focus and skills in-house to increase staff responsiveness to these issues. The job is currently posted and on track to be filled in the fall.
• The FY25 Budget includes funds specifically for traffic studies. Staff is currently evaluating the research already completed by the City and the State, particularly along State roads, as part of the development of the scope of work.
• The City received a Transportation-Land Use Connection grant from the Metropolitan Washington Council of Governments for the New Ave Bikeway Purple Line Connection Study. This study, which will kick off in the fall, will determine routing and infrastructure recommendations for safe and comfortable pedestrian and bike connections that will support transit access, as well as the impact of considering the closure of Anne Street at University Boulevard.

For additional information:

Purple Line:
https://www.purplelinemd.com/

The most recent Purple Line Community Advisory Team  for the Long Branch area can be seen here:
https://www.purplelinemd.com/public-meetings-events/ (slides and video)

New Ave Bikeway:
https://takomaparkmd.gov/government/housing-and-community-development/planning-and-community-development/new-ave-bikeway/

Crossroads Community Food Network – Crossroads Farmers Market
https://www.crossroadscommunityfoodnetwork.org/farmers-market/

Questions may be directed to:
Planning @ TakomaParkMD.gov